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Shopify D2C: The Growth of Beauty-based Manufacturing in 2020

January 01, 1900 / THOMAS R. CUTLER

Small manufacturers worldwide have forgone retail sales in favor of a D2C (direct to consumer) model. The reason is simple: margins. A beauty products manufacturer, for example, selling an organic cream for $40 online, with hard costs of $4, can realize huge profit margins by eliminating the wholesaler. That same product would be sold at $8 wholesale, and retail for $30. The small manufacturer gets squeezed.

When product is back-ordered or out-of-stock, it is a very serious indication that something is wrong. Building a better customer experience is at the heart of the D2C end-to-end brand. This means great ratings on customer service AND products. High retention rates matter in this business model.

2020 up and coming small D2C manufacturers have much in common; mostly fulfilling every order on time and accurately.

Small Shopify D2C manufacturers in the beauty industry
Overwhelmingly, small D2C manufacturers are using Shopify. The online store is easy to setup and use and is presented in a visually appealing online store. There are numerous app integrations, offering both security and reliability. Shopify offers excellent loading speed, powerful marketing tools, mobile responsiveness, and outstanding customer support. For new small businesses about to explode in the marketplace, having Shopify builds confidence.

Examples of new beauty product manufacturers selling goods on Shopify
Foxen Canyon Soap, a Shopify D2C manufacturer is a sustainable and environmentally friendly small soap and skincare company. Ellowyn Isaacson, Foxen Canyon Soap owner uses products from the diverse, local agricultural community and opened for business March 2018. Every part of her business is designed to be sustainable and environmentally friendly from sourcing the ingredients all the way to the impact of the soap washing down the drain. The company has quickly grown to become one of the largest soap companies on the Central Coast of California.

The Nude Alchemist is also a Shopify manufacturer. The brand is nude, transparent, with no fillers, no synthetics, only natural ingredients. No greenwashing. Essential oils are a strong focal point in most of the range as they harness the healing properties of nature that make the products what they are. Products are made with all-natural botanical ingredients, and certified organic where feasible, sourcing locally and right across the globe to maintain quality.

The mother and daughter team behind Belle Bar Organic formed the beauty company to help women of color live a life free of toxins, harmful chemicals, and inorganic ingredients. Being in the thick of the green beauty movement, this innovative small Shopify D2C manufacturer realized that women of color were not well represented.

Inventory control for small D2C Shopify manufacturers
Inventory control systems exist to maintain balance, replacing inventory at a steady rate consistent with the depletion rate. It is necessary to balance inventory stock levels to reduce waste and minimize the risk of damage to that inventory stock. Effective inventory control streamlines processes and helps to identify problems at the source.